New development and steady rent bumps in Houston have their price. Houston BOMA EVP Tammy Betancourt (right, with colleague Liz Sorsby) tells us valuations increased 50% to 70% over last year, which is pushing taxes up to 40% of OPEX. She tells us she's never seen such a steep rise, and its even more dramatic when you consider that values jumped 25% last year.

Tammy says Texas taxes are a little different than other places because its a non-disclosure state for sales prices. Instead, valuations are supposed to be processed on a fee-simple basis, more of a bricks-and-mortar-type valuation. However, Harris County Appraisal District is seemingly valuing buildings on future earning potential and the value of existing leases. Houston BOMA is exploring if theres a way to dispute the system. CBRE managing director/Houston BOMA immediate past prez Mark Nicholson (with CBs Lynn Cirillo) says hot areas like Houstons Energy Corridorwhich is over 99% occupiedare hit hardest. He expects a flurry of lawsuits this year as property owners protest their valuations.